Question 67 Chapter 5 of +2-Part-1
67. ( Adjustment of capital revaluation A/c/ Partner’s Cap. A/c/B/S) Ram , Rahim & Jacob are partners in the firm by the name “Good Luck Prices”. Their balance sheet on 31st , December , 2015 was as follows :
| Liabilities | Rs. | Assets | Rs. |
| Sundry Creditors | 27,000 | Goodwill | 1,17,000 |
| Employees provident fund | 6,000 | Building | 1,25,000 |
| Bills payable | 45,000 | Machinery | 72,000 |
| General reserve | 15,000 | Furniture | 24,000 |
| Capitals: | Stock | 1,14,000 | |
| Ram | 2,17,000 | Book – debts | 1,02,000 |
| Rahim | 1,66,000 | Cash | 12,000 |
| Jakob | 90,000 | ||
| 5,66,000 | 5,66,000 |
On that date, they agreed to take David as an equal partner on the following terms:
(i) David should bring in Rs. 1,60,000 as his capital and Goodwill. His share goodwill is valued at Rs. 60,000.
(ii) The goodwill account is to be written off before admission.
(iii) Provision for loss of stock and provision for book debts is to be made at 10% and 5% respectively.
(iv) The value of Building is to be taken at Rs. 1,90,000.
(v) The total capital of the new firm had been fixed at Rs. 4,00,000 and the partners accounts are to be adjusted in their profit sharing ratios. Any excess is to be transferred to current account or deficit to be introduced in cash.
(vi) Accrued commission on purchases is Rs. 10,000.
You are required to prepare the Revaluation account, Capital accounts and Balance Sheet of the new firm.
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The solution of Question 67 Chapter 5 of +2 Part-1: –
| Revaluation account |
|||||
| Particulars |
Amount | Particulars | Amount | ||
| To Provision for Loss of Stock | 11,400 | By Building A/c | 65,000 | ||
| To Provision for doubtful debts | 5,100 | By Accrued commission | 10,000 | ||
| To Profit on revaluation transferred to capital A/c | |||||
| Ram | 19,500 | ||||
| Rahim | 19,500 | ||||
| Jakob | 19,500 | 58,500 | |||
| 75,000 | 75,000 | ||||
| Ram capital accounts |
|||||
| Particulars |
Amount | Particulars | Amount | ||
| To Goodwill A/c | 39,000 | By Balance b/d | 2,17,000 | ||
| By Ram’s current A/c | 1,22,500 | By revaluation Account | 19,500 | ||
| To Balance c/d | 1,00,000 | By Premium Account | 20,000 | ||
| By General reserve Account | 5,000 | ||||
| 2,61,500 | 2,61,500 | ||||
| Rahim capital accounts |
|||||
| Particulars |
Amount | Particulars | Amount | ||
| To Goodwill A/c | 39,000 | By Balance b/d | 1,66,000 | ||
| By Ram’s current A/c | 71,500 | By revaluation Account | 19,500 | ||
| To Balance c/d | 1,00,000 | By Premium Account | 20,000 | ||
| By General reserve Account | 5,000 | ||||
| 2,10,500 | 2,10,500 | ||||
| Jakob capital accounts |
|||||
| Particulars |
Amount | Particulars | Amount | ||
| To Goodwill A/c | 39,000 | By Balance b/d | 90,000 | ||
| To Balance c/d | 1,00,000 | By Premium Account | 20,000 | ||
| By Revaluation Account | 5,000 | ||||
| By Bank Account | 4,500 | ||||
| By General res. Account | 19,500 | ||||
| 1,39,000 | 1,39,000 | ||||
| David’s capital accounts |
|||||
| Particulars |
Amount | Particulars | Amount | ||
| To Balance c/d | 1,00,000 | By Cash Account | 1,00,000 | ||
| Cash accounts | |||||
| Particulars |
Amount | Particulars | Amount | ||
| To Balance b/d | 12,000 | By Balance c/d | 1,76,500 | ||
| To David’s capital A/c | 1,00,000 | ||||
| To Premium Account | 60,000 | ||||
| To Jakob’s capital A/c | 4,500 | ||||
| 1,76,500 | 1,76,500 | ||||
| Balance Sheet |
|||||
| Liabilities |
Amount | Assets | Amount | ||
| Sundry Creditors | 27,000 | Building | 2,00,000 | ||
| Bills payable | 45,000 | Machinery | 72,000 | ||
| Employee’s provident fund | 6,000 | Furniture | 24,000 | ||
| Capital Accounts | Stock | 1,02,600 | |||
| Ram | 1,00,000 | Books debts | 1,02,000 | ||
| Rahim | 1,00,000 | Less provision For debts | 5,100 | 96,900 | |
| Jakob | 1,00,000 | Cash | 1,76,500 | ||
| David | 1,00,000 | 4,00,000 | Accrued Commission | 10,000 | |
| Current A/c | |||||
| Ram | 1,22,500 | ||||
| Rahim | 71,500 | 1,94,000 | |||
| 6,72,000 | 6,72,000 | ||||
Comment if you have any questions.
End of Solution
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Chapter-Wise Solution of Usha Publication Accountancy – Part 1 Class 12 – Session 2024-25 as per the PSEB curriculum
Check out Solutions to all questions of the every chapter shown as under. The Solution of Accountancy – Part 1 Class 12 – Session 2024-25 is provided as per the new book published by Usha Publication.
Chapter No. 1 – Accounting Not-for-Profit Organisations (Deleted from the Syllabus)
Chapter No. 2 – Partnership Accounts – I (Introduction)
Chapter No. 3 – Partnership Accounts – II (Goodwill: Nature and Valuation)
Chapter No. 4 – Partnership Accounts – III (Reconstitution of Partnership)
Chapter No. 5 – Partnership Accounts – IV (Admission of A Partner)
Chapter No. 6 – Partnership Accounts – V (Retirement and Death of A Partner)
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Chapter No. 7 – Partnership Accounts – VI (Dissolution of Partnership Firm)
Also, Check out our Comprehensive Chapter-wise solution of Advanced Accountancy Part 1 Class 12 by Unimax Publication
- Chapter No. 1 – Accounts of Non-Profit Organisations (Deleted from the Syllabus)
- Chapter No. 2 – Partnership Accounts – I (Basic Concepts)
- Chapter No. 3 – Partnership Accounts – II (Goodwill)
- Chapter No. 4 – Partnership Accounts – III (Change in Profit Sharing Ratio among Existing Partners)
- Chapter No. 5 – Partnership Accounts – IV (Admission of A Partner)
- Chapter No. 6 – Partnership Accounts – V (Retirement and Death of A Partner)
- Chapter No. 7 – Partnership Accounts – VI (Dissolution of Partnership Firm)
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